Why did the stock market crash? Why did BTC crash? Here’s the real reason!
The Kobeissi Letter put it bluntly: Thursday’s sell-off was driven more by a sudden market fear that Democrats would crack down on advanced AI, with some even calling for a ban on superintelligence, than by the midterm elections themselves. The election results had already been priced in; what really changed was sentiment.
The key point is that a total ban on AI is almost impossible, because it would be like handing the lead in the global AI race straight to mainland China. But the sell-off still happened. At its core, it was a combination of high leverage and a sudden shift in sentiment that forced major institutions to cut their positions first. The S&P 500 is still up 9% this year and has gained 85% since the AI boom began. The fundamentals haven’t collapsed.
I’d say this was a technical, sentiment-driven sell-off—not a collapse in fundamentals. Crypto fell alongside U.S. stocks because it was dragged down by this pullback in risk appetite. Highly leveraged accounts are feeling the most pain.
So I haven’t added to my positions to buy the dip, and I haven’t panic-sold either. I’m keeping my exposure under control and will wait for sentiment to settle and leverage to clear out first.
Do you think this is an opportunity, or are you still waiting for lower prices? @波段王龙哥 Let’s discuss! Share your thoughts! #美股遭遇2020年以来最严重抛售
The Kobeissi Letter put it bluntly: Thursday’s sell-off was driven more by a sudden market fear that Democrats would crack down on advanced AI, with some even calling for a ban on superintelligence, than by the midterm elections themselves. The election results had already been priced in; what really changed was sentiment.
The key point is that a total ban on AI is almost impossible, because it would be like handing the lead in the global AI race straight to mainland China. But the sell-off still happened. At its core, it was a combination of high leverage and a sudden shift in sentiment that forced major institutions to cut their positions first. The S&P 500 is still up 9% this year and has gained 85% since the AI boom began. The fundamentals haven’t collapsed.
I’d say this was a technical, sentiment-driven sell-off—not a collapse in fundamentals. Crypto fell alongside U.S. stocks because it was dragged down by this pullback in risk appetite. Highly leveraged accounts are feeling the most pain.
So I haven’t added to my positions to buy the dip, and I haven’t panic-sold either. I’m keeping my exposure under control and will wait for sentiment to settle and leverage to clear out first.
Do you think this is an opportunity, or are you still waiting for lower prices? @波段王龙哥 Let’s discuss! Share your thoughts! #美股遭遇2020年以来最严重抛售
